One of the most common questions we receive at Insurance Solutions Inc. in Cullman, AL, is, "do I need boat insurance?" There are some situations where boat insurance is required. However, you aren’t legally required to carry boat insurance in Alabama. Even though it’s not legally required, boat insurance is still good.

Boat Insurance Requirements

If you have a lien or loan on your boat, your bank will require you to have boat insurance. If your boat is lost in an accident, insurance allows the bank to recoup its money.

The other situation where insurance is often required is if you plan to use a marina slip or mooring. This helps protect the marina, yourself, and other boaters.

Who Else Needs Boat Insurance?

When not legally required, boat insurance comes down to risk tolerance. Your boat is a significant investment. Would you be able to replace it if it were destroyed in an accident easily?

Could you pay for the salvage if your boat sinks? What if someone else’s boat is damaged during an accident. You could be legally liable for their costs as well.

If you don’t have the funds to cover these types of mishaps, boat insurance is a great idea. It will protect you from financial loss and liability in an accident.

Types of Boat Insurance

There are three basic types of boat insurance. Liability covers any damage to another person’s boat or property in an accident. Experts recommend having at least 1,000,000 in liability coverage.

Uninsured motorist insurance will cover the damage to your boat or injuries to you or passengers if you are in an accident with someone who doesn’t have boat insurance.

Collision or comprehensive coverage is based on the value of your boat and will cover any damage to your boat in an accident.